“Egypt's economy grew by 5.1% in fiscal year 2025/2026 despite regional tensions, demonstrating its ability to withstand economic shocks,” the Finance Ministry said on Thursday, October 8, 2026. The Ministry made the remarks following Fitch Ratings' decision to affirm Egypt's credit rating at “B” with a stable outlook.
It said that economic growth was driven by stronger manufacturing activity and expansion in the communications and information technology sector. Egypt recorded a primary budget surplus of 4.9% of gross domestic product (GDP), while the overall budget deficit fell to 5.8% of GDP during FY 2025/2026.
Tax revenues increased by 27% without imposing new tax burdens, supported by government tax facilitation measures. The ministry also reported a nearly 65% increase in private-sector investment and said it would continue supporting business activity, production and exports.
However, it identified high debt-servicing costs as Egypt's biggest fiscal challenge, particularly amid elevated interest rates. The ministry added that its medium-term debt management strategy aims to extend repayment periods, diversify financing sources and reduce refinancing risks.
It noted that maintaining large primary budget surpluses would help reduce public debt and debt-servicing costs over time. Cabinet launches website for “Egypt Forum 2026” Egypt sees major expansion in agricultural development projects The Eighth African Union Mid-Year Coordination Summit (El-Alamein 2026)